Hapag-Lloyd orders six container vessels with midterm climate goals in sight
22nd June 2021 15:40 GMT

German international container line Hapag-Lloyd has ordered six container vessels with a capacity of at least 23,500 twenty-foot equivalent units each that can run on fuel oil and on LNG, amid congestion in supply lines and carbon reduction targets for shipping in 2030.

LNG has gained interest as a midterm solution to meet international shipping climate goals. The International Maritime Organization is targeting a 40% reduction in CO2 intensity in the global fleet by 2030 compared with 2008 levels and a 50% reduction in greenhouse gas emissions by 2050.

Many doubt LNG’s potential to meet the 2050 targets but say it has a good chance of meeting the 2030 targets. It is also an established, cost-effective technology with reasonably widespread infrastructure, compared with some of the greener options such as methanol and ammonia.

S&P Global Platts assessed LNG as a bunker fuel at Rotterdam, The Netherlands, at $490.88/mt June 21, equivalent to $9.60/gigajoule, compared with $404/mt, or $9.76/gj, for delivered 0.5% sulfur fuel oil at the port.

Platts assessed T2 FOB Rotterdam methanol June 21 at $17.42/gj.

LNG results in around 15%-25% less CO2 and at least 90% less sulfur dioxide and particulate matter, Hapag-Lloyd said.

“While we are only looking at LNG as a medium-term solution, it is currently the most promising fuel on our path to a zero-emission future,” the company said.

The announcement comes after the shipping line ordered six vessels at the end of 2020.

“Although this will not provide immediate relief for the current capacity shortage, it underlines our commitment to satisfy your demand,” the company said June 22 in a note to customers.

The container market is experiencing significant demand as importers seek to fill warehouses amid the easing of coronavirus-related lockdowns around the world.

The Platts Container Index, a weighted index of global container freight rates, was assessed at $6,931.62/forty-foot equivalent unit June 21, up from $1,219.03/FEU a year earlier.

Bunkerworld .,
22nd June 2021 15:40 GMT